By Victor Reklaitis and Sara Sjolin, MarketWatch
Apple advances in debut as Dow component
NEW YORK (MarketWatch) -- U.S. stocks pulled back Thursday,
taking a breather after the prior day's Federal Reserve-inspired
rally that sent the S&P 500 to its highest close in two
weeks.
The S&P 500 (SPX) fell 8 points, or 0.4%, to 2,091, while
the Dow Jones Industrial Average (DJI) dropped 92 points, or 0.5%,
to 17,982. The blue-chip gauge has been down by more than 100
points in the early going.
The Nasdaq Composite (RIXF) was roughly unchanged at 4,982.
The modest declines followed a volatile session on Wednesday,
when the indexes erased early losses to close markedly higher, with
the Dow up 227 points. The Fed, as expected, dropped its pledge to
remain "patient"
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
about raising rates, but signaled a slower increase in interest
rates than it foresaw just a few months ago.
"So in the end, while the Fed remains data dependent, the data
now seems to be saying 'it depends,'" said Sam Stovall, equity
strategist at S&P Capital IQ, in a note. "We maintain our
year-end S&P 500 target of 2250 as well as our expectation for
elevated market volatility."
Thursday's economic news: Before the market's open, a report on
jobless claims came in a bit weaker than expected, and stock
futures maintained their losses after its release. Jobless claims
for the week ended March 14 came in at 291,000
(http://www.marketwatch.com/story/us-jobless-claims-barely-changed-at-291000-2015-03-19),
while economists polled by MarketWatch had expected 290,000. S
A new reading on the Philadelphia Fed's manufacturing index is
expected at 10.am. Eastern, with economists predicting a rebound to
8.0 in March. A fresh figure for leading indicators is also due at
10 a.m., and Federal Reserve Governor Daniel Tarullo testifies
before the Committee on Banking, Housing, and Urban Affairs at that
time. Additionally, Dallas Fed President Richard Fisher retires on
Thursday.
Stocks to watch:Apple Inc.(AAPL) is in the spotlight as it
debuts as a Dow Jones Industrial Average component. Shares were up
0.2% in the early going. See: What being added to the Dow will do
to Apple's stock
(http://www.marketwatch.com/story/will-2015-be-apples-blue-chip-debut-2014-12-15)
Home builder Lennar Corp.(LEN) was one of the biggest gainers
among S&P 500 stocks after the home builder reported earnings
and revenue that beat expectations
(http://www.marketwatch.com/story/lennar-profit-revenue-beat-views-sees-improving-housing-market-2015-03-19).
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/apple-to-debut-as-dow-component-nike-earnings-in-focus-2015-03-19)
Other markets: The dollar recouped a big chunk of its post-Fed
losses (http://www.marketwatch.com/storyno-meta-for-guid), with the
ICE dollar index (DXY) showing a sizable gain. The greenback had
dropped against its rivals after Wednesday's Fed announcement,
sliding to its lowest level
(http://www.marketwatch.com/story/dollar-trapped-in-a-tight-range-ahead-of-fomc-outcome-2015-03-18)
against the euro in eight days.
The euro (EURUSD) was moving sharply lower Thursday, as
attention reverted back to negotiations between Greece and its
creditors, with a meeting on the sidelines of this week's eurozone
summit. Read: Merkel plays down hopes for Greek deal at European
summit
(http://www.marketwatch.com/story/merkel-downplays-hopes-for-greek-deal-at-european-summit-2015-03-19).
European stock markets were mostly higher, keying off the Fed
optimism. The Fed statement came out after markets in Europe
closed, making Thursday's session the first chance for that
region's investors to react to the news. The U.K.'s FTSE 100
(http://www.marketwatch.com/storyno-meta-for-guid) was flirting
with a record closing high.
Asian markets closed mixed, with stocks in Shanghai extending a
seven-day winning streak
(http://www.marketwatch.com/story/chinese-stocks-advance-further-after-us-rally-2015-03-19).
Gold rallied
(http://www.marketwatch.com/story/gold-rallies-as-fed-signals-slow-pace-of-rate-hikes-2015-03-19),
while crude oil prices slumped
(http://www.marketwatch.com/storyno-meta-for-guid).
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